Ukrainian processors increase purchase prices for sunseed

After the increase in export prices for sunflower oil and meal, domestic processors stepped up purchases of sunseed, which led to higher purchase prices, especially given the containment of sales by producers.

During the week, the purchase prices for SFS increased by 300-500 UAH/t to 16700-17000 UAH/t (including VAT) with delivery to the plant, which is the highest level since March 2023. Processors pay a premium for large batches to accumulate the volume of raw materials, and reduce the processing margin to the minimum level. Therefore, in the near future, sunflower prices will continue to rise, even if export prices for oil may decline.

Export prices for sunflower oil delivered to the Black Sea ports currently remain at 780-790 USD/t due to lower demand from China and India and increased competition with Russian oil.

Demand price of sunflower meal with delivery to the black sea ports rose to 195-205 $/t, which further supports the price of SFS.

According to Trading Economics, during the week the average price of sunflower oil for delivery to buyers fell by 0.7% to 851 $/t, while prices for soybean and palm oil continue to rise.

Export demand prices for SFS remain at the level of 325-340 $/t with delivery to the ports of the black sea and Danube and 430-440 $/t at DAP Bulgaria.

Pace of sowing SFS exceeds last year’s, and weather conditions favor the development of crops, so the sowing area may increase by reducing the area under corn, which will increase pressure on the quotes of the new harvest.

The early maturation of rapeseed will allow processors to start processing it earlier, which will reduce the demand for old crop sunseed in June and July.

Tags: prices, sunseed, Ukraine